Question
Your company has decided to embark on a Facebook Ad Campaign. You know that the ad itself will cost $10,000/month and you plan to run
Your company has decided to embark on a Facebook Ad Campaign. You know that the
ad itself will cost $10,000/month and you plan to run it for 6 months.
You want to go beyond the basic cost of $60,000 for the ad and include the time
investment that your department and other department will incur. Here are your
estimates of time:
Management (you): 15 hours to work with designers to imagine, create, and approve
the ad. In addition, you will spend 1 hour/week monitoring the progress of the ad, and
an additional 5 hours at the end of the campaign to evaluate the results.
Creative Designers: One designer @ 20 hours to design and edit according to your
direction. One designer @ 10 hours to set up the landing page for respondents to fill out
information (includes design and edits).
IT: 4 hours for one IT specialist to set the ad up according to your parameters (i.e. set
up links to appropriate landing pages, gather email addresses, etc.)
Marketing specialists: One specialist @ 5 hours/week to monitor responses, report on
activity.
Salaries:
Management (you): $90,000/year
Creative Designer: $45,000/year
IT Specialist: $50,000/year
Marketing Specialist: $50,000/year
Calculate the time investment based on how much time each employee will spend on
the project and apply their salary percentages. Remember that some calculations will be
a one-time only expense (i.e. Creative Designer's 20 hours to create the ad), while other
expenses will be performed weekly for 6 months (i.e. Marketing Specialist's time).
Now add the time investment to the cost of the ad campaign on Facebook. What is the
total cost of the campaign?
You track the campaign results and find that it has produced 12 new customers that
each bought products/services totaling $8,500 each. What is the total amount that the
campaign brought in?
Now calculate the ROI of this campaign. Remember that the formula for ROI is:
Gain of investment - Cost of Investment
Cost of Investment
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